It’s becoming increasingly common for foreign investors to choose to purchase a home in Torrevieja through a company rather than as an individual. This option can offer tax advantages, greater flexibility, and asset protection, but it also involves legal considerations that shouldn’t be ignored.

One of the main benefits of acquiring a property through a company is tax optimization. Depending on the investor’s country of residence and the company’s structure, it is possible to reduce some taxes related to sales, non-resident income tax, and transfer fees. Furthermore, managing multiple properties through a company can simplify accounting and reporting of rental income.

Another important advantage is asset protection. By separating the ownership of the property from the individual, personal liability can be limited against potential legal claims or debts associated with the property. This is especially useful for investors who manage multiple properties or who plan to use their properties for tourist rentals.

However, there are key legal considerations to keep in mind. Purchasing through a company requires formally establishing it, complying with tax and accounting obligations, and keeping it up to date with the Treasury and the Commercial Registry. Furthermore, purchase and sale transactions must be correctly reflected in the company’s accounting books, and in some cases, different withholdings apply than those applied by individuals.

It’s also important to analyze additional costs, such as management, accounting, and tax advisor fees. Sometimes, the tax advantage can be reduced if administrative expenses are high or if the company structure is not properly planned.

At A&G Lawyers, we advise international clients wishing to purchase a home in Torrevieja through a company, ensuring that each transaction complies with Spanish regulations, optimizing taxation, and protecting the investor’s interests. We review the company’s incorporation, prepare all necessary documents, manage registrations, and coordinate the sale and purchase process with developers or private sellers.

If you’re considering purchasing a property in Spain through a business, don’t leave legal planning to chance.

Ask an appointment with A&G Lawyers and secure your investment with the support of experts in international real estate and tax law.